FTSE 100 watch: Footsie starts recovery as oil rises

on Sep 18, 2017
Updated: Mar 11, 2020

The UK benchmark index has climbed into positive territory in today’s session, finding support in stronger oil, following last week’s hefty selloff, after the Bank of England (BOE) signalled that it might move to hike interest rates going forward. BAE Systems (LON:BA) is one of today’s most prominent FTSE 100 risers amid prospects for a jet order from Qatar.

As of 12:25 BST, the FTSE 100 had added 28.43 points to stand 0.39 percent higher at 7,243.90, finding support in financials, as well as energy shares which have tracked oil prices higher. Today’s advance comes after the blue-chip index plunged to a four-month low in the previous session, pressured by a rally in the pound, which jumped on the back of expectations for a rate hike by the Bank of England.

“The prospect of a softer Brexit and rising expectations of an interest rate hike could lead to a further appreciation of the GBP against the EUR. Conversely, a stronger GBP is weighing on UK equities,” analysts at Credit Suisse Wealth Management said in a note, as quoted by Reuters. “We remain negative on UK equities given their high overseas exposure.”

In individual movers, shares in BAE Systems have been in demand as news emerged that Qatar’s defence minister had signed a letter of intent to purchase 24 Typhoon jets from the UK defence giant. BAE’s shares are currently changing hands 2.94 percent higher at 613.50p.

At the other end of the spectrum have been tobacco shares, with British American Tobacco (LON:BATS) currently trading 0.70 percent lower at 4,708.00p and Imperial Brands (LON:IMB) standing 1.84 percent in the red at 3,266.33p.

The FTSE 100 was 0.45 percent up at 7,247.96 points as of 12:42 BST on Monday, 18 September 2017.